In 2018, Brock Lee Vegetables, Issued $1 Par Value Common

Multiple Choice

In 2018, Brock Lee Vegetables, issued $1 par value common stock for $30 per share. No other common stock transactions occurred until March 31, 2020, when Brock Lee acquired some of the issued shares for $25 per share and retired them. Which of the following statements is true for this acquisition and retirement?

A) 2020 net income is decreased.
B) 2020 net income is increased.
C) Additional paid-in capital is increased.
D) Retained earnings is increased.